Is This Workable?
I have the following situation and need some feedback .
I have a 30 year capital lease on two skilled nursing care facilities from a publicly traded REIT.
I sublease the two facilities and receive $20K per month, and the subleases are secured by $348,000 in monthly acount receivables.
The two subleases are for 10 years each. Face value $2,400,000.
What I want to do
I would like to sell the subleases at a 20% discount and raise $1,920,000.
My question
Has anyone ever heard of this being done, and where would I find the investors?
Thanks.
You can sell leases (normally).
Commercial brokers who deal with leases would know the market better. Check the commercial forum and with brokers who know the property.
You might also speak with the principles to see if they want to do a deal. They might offer a better price then an unrelated third party.
John
[addsig]
Rather than sell the leases I'd trot them into a bank and attempt to borrow your 1.9 mill using them as collateral.
Thanks for the suggestions. I'm currently working with some note brokers to place them. I'll let you know when they sell